Perhaps Simon Stevens should rethink his defence of private finance initiative contracts in the NHS (The NHS is on life support. Can this plan revive it?, 24 October). Last year it required a massive public campaign to prevent the illegal downgrading or closure of A&E and maternity services at Lewisham hospital which was proposed in response to the problems in an adjacent hospital suffering crippling PFI payments. Lewisham hospital is now part of a new NHS trust and is once again threatened by extortionate PFI payments.
Our research shows the trust could save up to £18m a year by challenging the PFI profiteers. In the last financial year, the PFI companies accounts list a profit of £7.49m from service contracts and £1.82m for directors remuneration and administrative costs. The annual interest repayments were approximately £18m. The average interest charges on PFI contracts is 8% per annum, but borrowing through government the standard before PFIs were forced on public authorities is half that, reducing the trusts charges to £9m. These unjustified costs totalling £18m represent a 46% reduction in the trusts current annual PFI unitary payment of £39m.
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